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Headquarters’ orchestration of Subsidiaries’ Contribution to MNCPerformance
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0003-4425-9367
Uppsala universitet, Sverige.
Bocconi University, Italy.
2014 (English)In: Local Contexts in Global Business, Vancouver: Academy of International Business , 2014Conference paper, Published paper (Refereed)
Abstract [en]

Anchored in a subsidiary evolutionary framework,this paper analyzes how headquarters of multinational corporations canorchestrate its network of subsidiaries. Headquarters orchestration is a valueadding activity aimed at increasing the performance of the organization. Grantingsubsidiaries autonomy and giving them attention is found to positivelyinfluence the scope of subsidiary activities as well as the level of subsidiarycompetencies. This corresponds to how headquarters, as a hub-type of firm, canadd value by orchestrating for subsidiary evolution. Furthermore, our resultsindicate that if subsidiaries evolve it has positive effects on the overall performanceof the multinational corporation. Thus, our findings help to explain howheadquarters may create value within the multinational corporation in terms ofincreasing subsidiaries’ contribution to performance. The results, based on asample of 2107 subsidiaries, elucidate the entrepreneurial role and function ofheadquarters as an important orchestrator of the multinational corporation forsubsidiary evolution and value creation. Theoretically, this extends theunderstanding of drivers and effects of subsidiary evolution and assigns animportant role and function to headquarters in the orchestration of networkedmultinational corporations.

Place, publisher, year, edition, pages
Vancouver: Academy of International Business , 2014.
Series
AIB conference proceedings, ISSN 2078-0435
Keyword [en]
headquarters; subsidiaries, subsidiary evolution, orchestration, multinational corporations, performance
National Category
Business Administration
Research subject
Industrial Economics and Organisations
Identifiers
URN: urn:nbn:se:mdh:diva-26625OAI: oai:DiVA.org:mdh-26625DiVA, id: diva2:766195
Conference
AIB 2014 Annual Meeting Vancouver, Canada
Available from: 2014-11-26 Created: 2014-11-26 Last updated: 2016-03-10Bibliographically approved

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Andersson, Ulf

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf